Supporting organizations with talent assessment, development and leadership progression. This interconnected challenge presents a timely opportunity for companies that are getting serious about ambitious climate targets to account for nature and biodiversity protection in their climate targets as a means to net zero. Many companies will see an opportunity to accelerate the green energy transition, and the plans that were put in place before the war in Ukraine, as renewables become more cost competitive. 4 Sustainable Travel Innovations Shaping the Future of the Tourism It appears increasingly challenging to meet the Paris Agreement goal to limit warming to 1.5 degrees to 2 degrees Celsius relative to preindustrial levels, as emissions should reach all-time highs in 2023. Data in your Equity, Inclusion & Diversity strategy: friend or foe? Finnair Chairman Jouko Karvinen values age and background diversity as part of the airlines emphasis on sustainability, shifting the scope of the dynamics and the discussion in the process. Here are five of the hottest sustainability trends they identified, as well as how you can prepare for them. Beyond capturing new markets, transforming your business towards sustainability is also a way to address changing customer and investor needs, as well as to attract and retain talent. According to Deborah Kaplan, global head of sustainability at SAP Customer Success, corralling and understanding tons of disparate data is the biggest challenge for organizations regardless of where they sit on the sustainability preparedness spectrum. Source: Euromonitor's Voice of the Industry: Sustainability Survey 2022. The COP27 climate conference was a mixed bag. Economist Impact, through its Back to Blue Initiative, has put a spotlight on the need to tackle chemical pollution. Finally, the need to draw down greenhouse gases already in the atmosphere will continue to gain momentum in 2023, with technological carbon-removal solutionsin addition to nature-based onesseeing unprecedented investment following the Biden administrations announcement to invest US$3.5bn in carbon-removal technology. When: April 28 Where: Cambridge, Mass., and virtual Cost: $12.51-$138.43 Where to register: https://sustainabilitysummit.mit.edu The MIT Sustainability Summit is a student-run event to demystify carbon markets for aspiring and current leaders. Building on the visibility of nature-based climate solutions at COP26, there was an enhanced profile for nature at COP27 too. All Trends Business Sustainability Our hand-picked collection of the top sustainability trends of 2023 & 2022. 2 Circular solutions such as second-hand and previously owned products are also gaining traction amongst global consumers as, according to Euromonitors Voice of the Consumer: Sustainability Survey, fielded January to February 2022, 34% of global respondents mentioned their willingness to buy these products. Confrontation was always seen as an essential weapon for campaigners, but a new era of cooperation is proving equally effective. Resilience & Adaptation: There will be further progress on loss and damage and the global adaptation goal. Boards leading on ESG drive the ESG culture of the board through its composition. With this in mind, we think that adaptation will become as material as climate transition in terms of protecting lives, assets and the productive capacity of the economy over time. Sustainability is good for business, and not just because it mitigates regulatory compliance risk. This was billed as the first Africa COP, and a focus on developing-country issues, as well as the agreement on loss and damage, illustrated the vital need for inclusive communities and considering the impact of climate on the most vulnerable communities. Key insights such as 'The Future of Jobs' report will map . /esg/insights/featured/special-editorial/key-sustainability-trends-that-will-drive-decision-making-in-2023 Inspiration, a mini-series with Lorange Network and IMD, Business transformation: incumbents must not assume the right to win, Executive pay: balancing sustainability with profitability, We need a realistic, fact-based approach to sustainability, Reframing sustainability: from risk to opportunity, Activists are not the enemy,so lets work together. Global Sustainability Trends for 2023 - According to 42 experts This shift has been fueled by increasing energy insecurity, rapidly changing regulatory and reporting standards, and investor appetite for environmental, social and governance (ESG) performance. Vanina Farber, elea Professor of Social Innovation, Patrick Reichert, Term Research Professor and Research Fellow. I have ordered these by the five pillars of Economist Impacts Sustainability Project: Net zero is the ambition to reduce greenhouse-gas emissions as much as possible towards zero, and to counter any remaining emissions with carbon-negative solutions, whether nature-based (for example, planting trees or restoring mangroves) or technological (such as direct air capture). To that end, here are the top sustainable living trends to watch in 2023. By next year, IDC analysts predicted 80% of G2000 companies will capture their carbon data and report their enterprise-wide carbon footprint using quantifiable metrics compared with 50% today. Since 2019, the number of people affected by food shortages has more than doubled to 345 million, roughly 4% of the world population, from 135 million, as reported by the World Food Programme. Finally, our companies are transforming. Authors: Andrew Angle, Aiste Brackley, Justin Nelson, Laura Street, Mark Lee. Some facts are encouraging: So, there is a real case for a glass half full view on climate. To save on energy bills, firms will renovate buildings to prevent heating loss and implement digital solutions for temperature controls, shut off lighting and equipment when not in use, and replace less efficient outdated equipment. What kind of regulation forecast mechanism is needed to be prepared for changes in standard setting at different levels (ISSB, EU regulation, etc.)? On the one hand, developed countries finally agreed to set up a loss and damage fund to compensate developing countries for the climate chaos that industrialised countries have mainly causedalthough there is no money in it, for now. However, organizational transformation and readiness is needed to push the boundaries of the problems that private capital can address and solve. MSc in Sustainable Management & Technology, Executives-in-Residence & Executive Fellows. Sustainability-linked bond issuance fell sharply over the second half of 2022 as investors raised concerns about issuer ambitions and incentives to achieve sustainability targets. Here are our top 10 sustainability trends we're expecting to see gain momentum and define sustainability in 2023: 1. Despite this, biodiversity, essential to sustaining natural capital and ecosystem services, is declining. yk Ik, Professor of Digital Strategy and Cybersecurity. 5 Hottest Sustainability Trends For 2023 + How You Can Prepare For Them Consequently, in 2023, we anticipate the durability of new employee-friendly workplace practices will be tested. Company executives and boards of directors have become more attuned to the external reporting aspects of sustainability. Intergovernmental Panel on Climate Change (IPCC) experts argue in their latest climate change mitigation report that, to mitigate climate change and avoid a rise in global temperatures over 1.5C-2.0C, offsetting carbon solutions are not enough, and urge the need for carbon-negative (or climate-positive) strategies to accelerate global economies transition towards low-carbon systems. 1. We need a more constructive engagement between the US-led West and non-Western countries. For example, quite a few food companies cant achieve net zero without having their suppliers (farmers) planting crops that are of no use for the company supply chain, but which capture CO2. Workers increasingly demonstrate willingness to adjust the time and effort they dedicate to their job or leave their positions for new opportunities if workplace culture does not align with their values and expectations. The impacts from climate change will not be evenly distributed, with lower- and lower-middle income countries more at risk than higher-income peers and less ready to cope. Otherwise, if emissions continue to rise, meeting Paris Agreement goals could entail greater and more costly decarbonization efforts. How do you inspire your team? We know that sustainable fashion is high on our trend predictions for 2023, but what also featured in our research was the increased use of sustainable materials. In 2023, luxury players need to accelerate their decarbonization efforts by working on their Scope 3 emissions, and shift from a mindset of managing ESG risk to creating opportunities for strategic renewal and greater brand desirability through new purposeful and positive-impact business models. High rates of inflation in many markets are causing the prices of many products to rise steeply. Automobile and fashion have had by far the heaviest adverse impacts on the environment and society, so actors operating in these two sectors have been ahead of the pack in reversing this trend. However, companies need to back-up their announcements and messages on certified claims, considering upcoming stricter regulation, as governments and savvy consumers are demanding transparency and accountability. The U.S. Customs and Border Patrol is enforcing 55 active Withhold Release Orders and targeted over 3,500 inbound shipments from 2021 to 2022. Both crises call for increased focus on energy efficiency and acceleration of investment in renewables, suggesting alignment. In the period 2021-2022, product packaging and product claims rose 6.0 and 2.4 percentage points respectively in the share of global respondents, as efficient ways for businesses to communicate sustainability and improve their brand positioning. More countries may make reporting under recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) mandatory, such as New Zealand, Singapore and Switzerland, where the requirement comes into force in 2023. This includes swapping packaging materials . Yet only 21% believe that their organizations are very ready to address such issues. Mind the ESG reporting trap! With most models still at an experimental stage, a tougher challenge is spreading solutions globally. Companies have been struggling to communicate sustainability to consumers. If not, select "Manage Preferences" to learn more about managing your cookie preferences. At COP27 countries finally made progress on establishing a framework for a Global Goal on Adaptation (GGA). Meanwhile, the number and duration of droughts globally have risen by almost a third since 2000, according to the U.N. Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk. Recent research reinforces the link between increasing drought frequency and severity and climate change, which has made Northern Hemisphere droughts in summer 2022 at least 20 times more likely. Download this insight brief to learn about the top eight ESG and sustainability trends you should expect to see in 2022 and beyond. One main driver for this is the next generation of family owners. Green Construction Trends That Are Emerging in 2023 These two events helped spotlight the links between two global environmental crises, climate change and biodiversity loss. More than 40,000 species are at risk of extinction in the coming decades, according to the UN progress report on the Sustainable Development Goals released in July 2022. What is your plan to transition into the low-carbon era under different scenarios? Published May 1, 2023 + Follow As the world continues to grapple with environmental and social challenges, sustainable finance is becoming increasingly important. In addition, products carrying carbon-neutral/reduced carbon claims globally increased by 38% during 2020/2021, according to Euromonitors Sustainability Opportunity Tracker (15 countries in seven industries). In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions. At the wake of the conflict that has stirred markets, Eco-Business rounds up six trends that could influence global sustainability in 2023.
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